Greener corporations are more profitable, says CDP report
Large US companies that are leading climate change action are raking in superior profitability and benefiting from lower volatility of earnings, according to a new report from CDP. The international organisation that encourages companies to disclose how they are managing environmental risks, says the finding proves that addressing climate change is a win-win situation for corporations. It reveals that corporations that are managing and preparing for climate change secure an 18 percent higher return on investment than their competitors and 67 percent higher than companies that have failed to disclose environmental data. These greener corporations are taking action by setting ambitious emission reduction targets and enforcing internal carbon prices. The report suggests that while such actions are not directly linked to profitability, they are evidence of a firm integrating a responsible long-term view, which appeals to investors. “With this comprehensive analysis of S&P 500 companies, the market has new, compelling evidence of the link between industry leadership on climate change and corporate profitability”, said CDP CEO Paul Simpson. (Blue and Green Tomorrow)
Nestlé announces new partnerships and CSR commitments
Multinational food and beverage company Nestlé has teamed up with a number of organisations and made a host of new CSR commitments to help accelerate its sustainability strategy. At this week’s UN Climate Summit in New York, the company endorsed one of the world’s largest coalitions on climate issues – Caring for Climate – which was launched by the UN in 2007 to advance the role of business in addressing climate change. Speaking at the summit, Nestlé’s executive vice president and head of operations José Lopez said: “The Caring for Climate initiative is fully aligned with our own explicit commitments, which reflect our respect for society in which we operate, respect for the environment, respect for the future generations”. In a separate announcement this week, Nestlé revealed it has teamed up with The Wildlife Trust in a campaign to involve local communities around its UK factories in protecting precious wildflower meadows, which have declined by 97 percent since the 1930s. (Edie)
Corporate Reputation
Sir Tim Berners-Lee warns that big business wants to take over internet
Big American corporations are trying to claim the internet for themselves and it would be a disaster if they were allowed to do so, the creator of the World Wide Web has warned. Sir Tim Berners-Lee said that increasingly powerful forces were trying to “abuse the internet” to gain “unbelievable power”. American companies such as Google, Facebook and Twitter have grown into multibillion-dollar businesses since the creation of the web 25 years ago. Speaking after receiving an honorary freedom of the City of London at a ceremony last week, Sir Tim did not point his finger at any particular company but said that large global internet and telecommunications companies would “love to be able to take control of the internet market” and “use it to establish control of some other markets”. Legislation, he said, was essential to protect web freedoms, proposing the creation of a digital version of Magna Carta at an international level to protect basic web rights. It is “about personal rights but about companies too,” he added. (The Times*)
Policy & Research
EU Directive calls for corporate disclosure of non-financial information
Around 6,000 large companies and groups across the EU will be required to disclose certain non-financial information on environmental and social impacts as well as diversity policies for boards of directors under a new directive adopted by the EU Council. Large public-interest entities with more than 500 employees will be required to disclose on policies, risks and results with regards to environmental matters, social and employee-related aspects, respect for human rights, anti-corruption and bribery issues, and diversity on boards of directors. Michel Barnier, the European Commission’s vice president, said: “Companies, investors, and society at large will benefit from this increased transparency… This is important for Europe’s competitiveness and the creation of more jobs”. Member states will have two years to incorporate the directive into national legislation. Companies affected by the directive will be required to start reporting in their financial year of 2017. (CGMA)
UK Energy Minister highlights ‘huge economic potential’ for sharing economy
New Energy Minister Matthew Hancock wants to make the UK the ‘global centre’ of the sharing economy, announcing a nationwide review into how the concept can benefit businesses. Led by Debbie Wosskow, chief executive of sharing economy advocate Love Home Swap, the review will assess the opportunities offered by the sharing economy business model, and ways its success can be expedited. “The sharing economy is disrupting existing markets and changing the face of business”, said Hancock. Headlined by start-up companies including Airbnb and Zipcar, the sharing economy generates annual revenues in the UK of around £9 billion and could reach £230 billion by 2025. The concept’s environmental credentials are underpinned by a reduction in production as consumers and business take advantage of unused capacity. “There’s huge economic potential for the sharing economy and I want to make sure that the UK is front and centre of that, competing with San Francisco to be the home of these young tech start-ups”, Hancock added. (Edie)
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